Sky TV signs conditional deal to renew rugby rights; shares gain
By Tina Morrison
Oct. 24 (BusinessDesk) - Sky Network Television, New Zealand's dominant pay-TV company, has signed a conditional
contract to renew its five-year deal with the New Zealand Rugby Union and the SANZAR unions for an undisclosed amount.
The shares rose to a two-week high.
Auckland-based Sky is set to renew the rugby rights from 2016, it said in a statement. It didn't disclose any terms or
conditions of the agreement. The current rugby union contract which expires in 2015 awards exclusive broadcast rights
across technology platforms, including internet viewing.
Like other pay-TV companies around the world, Sky has gained a foothold in the New Zealand market by chasing the rights
to the country's most popular sport and currently counts almost half of New Zealand households as customers. The company
is facing increasing rivalry from local internet-based services such as sports-focused Coliseum and
entertainment-focused offerings from Spark New Zealand, formerly Telecom, as well as overseas services from the likes of
Netflix, Quickflix and Ezyflix.
Shares in Sky rose 2.4 percent to $6.07.
Sky's previous investment in broadcast equipment means it is the only entity able to offer comprehensive coverage of New
Zealand rugby, including everything from international tests to school sports, according to people familiar with the
industry.
"This will provide a platform to showcase our game at all levels and further secures the future of rugby in this
country," New Zealand Rugby Union chief executive Steve Tew said in a statement. The NZRU will comment further once
SANZAR has concluded rights agreements across all territories, he said.
The rugby union gets almost three quarters of its income from commercial contracts, including broadcast and sponsorship
deals.
(BusinessDesk)